Agriculture Committee Rejects Dairy Amendment Act

US - The Goodlatte-Scott dairy amendment, which would have provided margin protection for farmers when margins drop below $4 at no cost for the first four million pounds of production, has been rejected by the House Agriculture Committee at a vote of 29-17.
calendar icon 12 July 2012
clock icon 1 minute read

The amendment was introduced by Republicans Robert Goodlatte and David Scott. The amendment offered a stand-alone Dairy Producer Margin Insurance Programme similar, but not identical, to the margin insurance portion of the Senate Farm Bill. The amendment would also have replaced the market stabilization programme included in the Senate bill and replaced it with a dairy farmer safety net without the government-mandated supply management provision.

As always, this subject has split the industry.

The National Milk Producers Federation has supported the decision, saying the amendment would have undone years of consensus-building and compromise among dairy farmers. The Federation is urging the Committee to proceed with the final approval of the 2012 Farm Bill this week.

The International Dairy Foods Association (IDFA) expressed disappointment with the decision. IDFA reject the Dairy Security Act claiming that supply management imposed on the industry will impose a complex and costly regulatory burden on dairy foods companies and stifle both export opportunities and future investment in the industry.

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